Canadian executives remain more positive than most when it comes to an expected economic recovery, according to an American Express global survey.
While 72% of Canadian executives anticipate further economic contraction over the next 12 months, nearly a quarter of local companies expect to see modest economic expansion over the next year. Only 2% of business executives in the U.S. share that economic optimism.
While many companies are focusing on controlling or reducing costs, many are doing so to avoid laying off staff. Half of the executives polled worldwide said they had planned salary and bonus freezes; 32% plan to reduce employee benefits.
In Canada, however, only 16% plan to freeze salaries and bonuses and 23% plan to reduce employee benefits.
Despite the weight of the economic downturn, companies are still spending to position themselves for recovery. Roughly 77% of executives in Canada said they're still spending money on marketing, advertising and public relations; 71% said they're still planning to invest in research and development. Almost 70% said they were investing in information technology and employees.
Among the areas they considered of least importance to invest company resources were using third-party consultants, exploring mergers and acquisitions and continuing employee travel.
Travel continues to represent a significant expense for most businesses, and 94% of Canadian businesses plan to cut back on travel spending.